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The financial goals of a business organization - Part II o prepare for your next finance exam and analysis of financial management goals, recall that

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The financial goals of a business organization - Part II o prepare for your next finance exam and analysis of financial management goals, recall that business and financial managers pursue several types heoretical and actual goals. These possible goals indude maximizing a firm's shareholders' wealth, maximizing the firm's profit, and satisfying its takeholder interests. To get these concepts dear and organized in your mind, consider the following questions. he most theoretically sound goal of financial management should be: Maximizing the firm's profits Maximizing the firm's managernent wealth Maximizing the firm's shareholder wealth Maximizing the firm's bondholder wealth he actual goals pursued by the firm's financial managers may not attempt to maximize the firm's shareholder wealth because: The firm's managers consider the goal of maximizing shareholder wealth to be discriminatory against the concerns and objectives of other stakeholders. The firm's managers fear bondholders and other creditors more than they fear shareholders. The firm's managers and shareholders have different motives and desires The firm's managers would rather focus on the firm's short-term, rather than its long-term, performance

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